Benny Roshan, chair of the Probate, Trusts & Estates Litigation group, shared her legal perspective with WealthManagement.com regarding the sale of the James Brown Estate to Primary Wave Music for an estimated $90 million. Part of the money from the transaction will be used to endow scholarship trust for underserved children in South Carolina and Georgia, which was outlined in Brown's plans. The hindrance in carrying on his legacy lies in pending lawsuits that are now on appeal. 

Excerpts: 

“Generally, the residue of an estate is distributed to the designated residuary beneficiaries once all the claims (including litigation) in the estate are resolved and all associated administrative expenses are paid."

“Here, absent any exceptions, the children who are set to receive music scholarships from Mr. Brown’s estate may need to wait until such a finality is reached. However, given the $90 million purchase price Primary Wave is set to pay Mr. Brown’s estate, the estate will have substantial liquidity. Assuming there aren’t equally significant debts, the estate could (and should) consider making preliminary distributions to the designated class of beneficiaries, so Mr. Brown’s ultimate intent to give the gift of music to underprivileged children can be honored after a decade and a half of delay.” 

Read the full article here. 

Resources

• WealthManagement.com